Like Goldman, Nomura too was found expecting the Modi wave next year. "Nomura expects a BJP-led coalition to form the next government at the Centre after the 2014 elections," said Alastair Newton, a political analyst at Nomura, which is a Japanese brokerage.
Sensing unrest in the political sphere of the country, he however back-tracked a bit saying,"a stable government, regardless of whether it is led by the BJP or the Congress, should support a gradual business cycle recovery."
Foreign companies aspire for a stable politics, leading to stable economy.
Positive about the future, Sonal Verman, the chief economist in Nomura India said,"Once political stability has been established, we believe past investment projects cleared by the Cabinet Committee of Investment could be implemented. This revival will be led by a debottlenecking of existing investment projects."
Earlier Wall Street giant Goldman Sachs earned criticism of the UPA for its political statement supporting Modi. He also said that the recent market rally is driven by Modi's popularity, leading to a Sensex target of 23,000 for December 2013.
Throwing light on the possibilities of a better economy, Verma of Nomura said,"political stability and policy credibility are paramount to corporates making long-term investment decisions. This will help the economy witness a gradual recovery after Q3 of 2014. We expect GDP to accelerate to 5.7 per cent in 2015 from 4.8 per cent in 2014. Our growth recovery forecast is more gradual than the country's past cycles due to the leveraged balance sheets of corporates, higher bad loans and higher interest rates."